Bitcoin Miner Iris Energy Orders 7,000 Mining Machines As Halving Nears

Bitcoin mining company Iris Energy is increasing its hash rate by 25% as the bitcoin halving nears.

Australia-based Bitcoin mining company Iris Energy announced Friday that it would increase its self-mining hash rate by 25% through a new partnership with Bitmain. The new deal will see Bitmain deliver roughly 7,000 S21 mining machines. Once delivered and installed, the new machines will bump Iris Energy’s Bitcoin self-mining hash rate from 5.6 EH/s to 7.0 EH/s.

Iris Energy will pay Bitmain $19.6 million for the incoming fleet of mining machines. However, based on the purchase agreement, only $16.7 million (85% of the full amount) would be paid before shipment. An outstanding balance of $2.9 million is due for payment within a year after the fleet’s delivery, which is expected to happen in early 2024.

As per today’s announcement, Iris Energy will install the new machines in its Childress, Texas, mining centers. Notably, the self-mining capacity increase under the latest Bitmain deal represents a portion of Iris Energy’s business that directly generates revenue for the company. 

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Iris Energy also boasts three Canada-based operations, which host mining equipment for partners. The company runs 100% of its Bitcoin mining using renewable energy sources, thus bucking the common claim that mining is harmful to the environment.

Bitcoin Miners Strategize Ahead of Halving

Iris Energy’s latest move suggests a change in approach as miners gear up for the next Bitcoin halving, now expected in April 2024. Last year, miners were largely selling bitcoins to fund operations and also sold mining equipment to stay afloat.

In stark contrast, Iris Energy noted in today’s update that its latest hashrate expansion represents part of an overall strategy to prepare for the upcoming halving. Specifically, the latest generation of Bitmain S21 miners would increase the company’s fleet resilience in a post-halving environment.

Miners require the latest equipment to stay competitive with the Bitcoin halving set to drop block rewards from 6.25 BTC to 3.125. Ideally, the block reward drop, which is roughly six months away, might signal the beginning of a new bull market and push BTC to new highs.